August same store sales results were out today, and for the most part the news was good. There were several notable upside surprises, which resulted in the stocks getting a nice pop today, but there were also some losers in the retail sector as well. I want to take a look at some of the best and worst performers and include some commentary on each one.
Best performers:
- Zumiez (Nasdaq:ZUMZ) reported 17.4% increase in August comps, versus analysts estimates of a 9.5% increase. This skateboarding and snowboarding apparel retailer is quickly growing and is planning to build 50 new stores this year. ZUMZ is not for the faint of heart as it now trades at almost 48 times this year's earnings estimates. The stock gained 2.1% on the day today.
- Abercrombie and Fitch Company (NYSE:ANF) reported 6% same-stores sales increase versus analysts estimates of a 2.1% increase. The company has been the most consistent performer in its teen apparel sector. The stock gained 1.44% on the day.
- Saks Incorporated (NYSE:SKS) reported a staggering 18.2% rise in August comps, doubling analysts estimates of a 9.1% increase. This may be a first sign that SKS is beginning to turn things around. The stock gained 3.2% on the day.
- Target Corporation (NYSE:TGT) reported same-store sales that increased 6.1% versus analysts forecasts of 5.0%. Target has consistently gotten the better of its rival Wal-Mart Corporation (NYSE:WMT) of late and it doesn't appear to be changing just yet. TGT gained 2.44% today.
Worst Performers
- Chico's FAS (NYSE:CHS) reported same-store sales that declined 9.3% versus analysts estimates of a decline of 6.4%. The news seems to continue to get worst out of this company every day. The stock lost 1.14% on the news.
- Limited Brands Inc (NYSE:LTD) reported August comps that fell by 1.4%, compared to analysts forecasts for a loss of 1.0%. Limited has made some fairly large missteps of late, and the stock sits near a 52 week low. The stock lost 2.05% today.
All in all the same-store sales numbers were quite positive. The teen apparel retailers seemed to bounce back nicely from a very rough July, buoyed by back to school shoppers. The market responded nicely today to the retail numbers that were released, largely because there was a lot of pessimism surrounding the numbers. It will be interesting to see if this nice month was a blip or something that could start a trend.
If you are interested in viewing the article about today's story stock and another retailer, J. Crew, click here.
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